The ability to adapt to different cultures and talent are some of the characteristics that position Uruguayan tech companies on a global scale.

The United States, with over 80% representation, the United Kingdom, Spain, Canada, and Argentina are the top five markets to which Uruguayan tech companies export. However, through various channels, some companies in the country manage to connect with alternative markets, creating an opportunity to diversify their operations and position Uruguay as a global provider of tech services.

Uruguayan technology companies have demonstrated a remarkable ability to adapt to different cultures, positioning themselves as global players thanks to their talent and high-quality work. Some have broken into less conventional markets, opening new opportunities for diversification and strengthening Uruguay’s reputation as a hub for tech services worldwide.

The five main markets where Uruguayan tech companies export are the United States (with over 80% of representation), the United Kingdom, Spain, Canada, and Argentina. However, through various channels, some companies from Uruguay manage to reach alternative markets, providing a significant opportunity to diversify operations and promote Uruguay as a seller of technological services globally.

One example is Space Dev, a company focused on blockchain software development and consulting, which has made a strong entrance into markets where the blockchain ecosystem is growing. In 2023, the company entered Dubai (United Arab Emirates), where they now have two clients. “Both are startups, and we started by working on our Discovery Sprint service to understand needs and design, then we sold them the software development service,” said CEO Federico Sendra.

The strategy to access this market was organic: one of the clients found them through their website, and another came through a recommendation. According to Sendra, it is easier to sell at Uruguayan prices in the Dubai market. Additionally, the time zone difference does not pose significant issues, and people there are accustomed to working with foreigners.

In July of this year, Space Dev also began selling software development services to a company based in Istanbul, Turkey, one of the countries where the blockchain ecosystem is growing rapidly. In this case, the connection with the client was made through a sector event, a common method in the industry.

Through a contact, the company also began working with a Russian client, to whom they sell staff augmentation services. “They are the second-largest NFT company in the world,” said the company’s CEO.

In its history of exporting to unconventional destinations, in 2019 the company worked on a project in Cambodia, Asia.

While in these markets, Uruguayan companies’ prices may not be as competitive, Sendra points out that the differentiator is the quality of the work. Regarding the challenge of bringing money into the country, the company uses cryptocurrency payments.

In the case of Loopstudio, a software development company exporting to Germany, the company’s entry into the market was through Andrés Ruiz, the company’s head of business development. Ruiz moved to Germany in 2019 to pursue a master’s degree and because his partner is German. Over the past three years, he has secured three local clients through networking at conferences and events.

“We’ve established a partnership with an agency in Düsseldorf that has allowed us to work on small but impactful projects, such as the website for the BMW ATP Open in Munich. The German market is interesting, where one can compete well, and there is a lot of work. However, factors such as language and the lack of awareness of Uruguay can be competitive barriers,” Ruiz explained.

In this sense, Ruiz points out that Germans prefer to work in their language, and they are accustomed to hiring providers from Eastern Europe who speak German. “Initially, they do not think of Uruguay as a place for software development, they only know us through football,” he noted.

To overcome this challenge, Ruiz emphasizes the importance of building trust and proving that one is the right person for the project. In his role and at various conferences, he works to promote Uruguay and Latin America as a hub for tech talent.

From his experience, German clients respect deadlines, and trust is essential for them. “It may happen that the pre-contract phase takes longer than what is typical in the U.S. because contracts in Germany are more thorough. They set many more rules, and they like to work with fixed prices, knowing what they will receive and how much they will pay to plan their finances in advance,” he explained.

Meanwhile, Nareia, a Uruguayan software engineering company that works with clients worldwide to create mobile applications and websites, has exported to countries such as Lebanon, Canada, Switzerland, and Finland.

“There are always challenges with other cultures, and this varies between countries, but we’ve always been able to overcome them. I believe it has a lot to do with the oriental culture. In the midst of giants, we have to adapt, and that makes you grow. That’s why we like looking for new markets,” said Diego Bonilla, CEO and partner of the company.

For Bonilla, the “most exotic” country they’ve exported to in their history was Lebanon, between 2018 and 2021. “In December 2021, we went to Beirut for the first time. It was magical, getting to know their culture and discovering that it had many points in common with ours,” he recalled about this experience. Between 2020 and 2021, the Uruguayan company also exported to Finland, a market they accessed through a recommendation.

Currently, Nareia has a client in Switzerland, which they connected with through a service search channel. “This year, we started creating a business partnership, and we’ve already been included in the trusted list of a major bank there, which has opened up some interesting opportunities,” Bonilla explained regarding this market.

As for the working dynamics, he mentioned that, although many clients begin their professional relationships remotely, they make efforts to visit them or have them visit.

“Many have come to meet us and work for a while in our offices at the LATU innovation park, and we take the opportunity to show them around the country,” he said.

Since its inception, the company has focused on international markets. Their first client outside the country was in Canada, and over the years, they have had clients from more than 15 countries.

New Opportunities:

For Eduardo Vargas, Vice President of Markets at the Uruguayan Chamber of Information Technologies (CUTI), commercial destinations like Latin America and Central America are still underexplored by the sector and represent an opportunity for growth.

“There are companies that are growing rapidly in Central America, Panama, Costa Rica, and Puerto Rico. It is an interesting region because, being so close to the U.S., they share many customs and management practices. There’s also Brazil, a giant market where Instituto Uruguay XXI is making a significant investment, although it is a tough market, especially due to the tax issues. Furthermore, countries like United Arab Emirates should be studied more closely,” he explained in an interview with El Observador. Despite the strong presence in the United States, he believes there is still a lot of room for growth in that market.

The path to achieving this, he stated, is to conduct more commercial missions at the national level. “I believe the strength of Uruguayans lies in our cultural affinity. We adapt very well and build strong relationships with the markets we work in, in addition to the talent being developed in the country,” he pointed out.